Retail Media Radar: August
Each month we look at retail innovation and best practice around the world. Here is a small selection of great examples that we’ve seen this month.
1. ‘Scan and Go’ as the next frontier for “Retail Media 2.0”
“Scan and Go” is becoming an important new retail media channel.
Reaching customers in the aisle where a product displayed allows brands to place ads directly in customers' hands, offering multiple opportunities for customers to see products as they shop.
Retailers such as Tesco and Sam’s Club have both launched retail media capabilities that integrate ads into the in-store self checkout mobile app/scanner experience. Customers see display ads on relevant product pages that dynamically refresh after each new product scan.
The helps customer’s discover new products as they shop in-store and provides brands with the opportunity to target & influence customers close to the point of decision.
More information: https://retailtechinnovationhub.com/home/2024/7/25/sams-club-hails-step-forward-in-retail-media-20-as-retailer-launches-displays-ads-in-scan-and-go-feature
2. Woolworths Australia – timely retail media
Woolworths engaged in several in-store and out-of-home (OOH) retail media initiatives to celebrate this year’s Paris Olympics and Paralympics.
Woolworths Australia, had photographed Australian athletes with various produce ahead of the Games, so they could promptly go live with a relevant ad should they achieve Olympic success in Paris.
They then used a range of media including large format billboards, street furniture, and digital assets in high-traffic areas, enhancing customer engagement before, during, and after the Games.
For example, when Australia swimmer Mollie O'Callaghan broke the Olympic record, the retail media campaign could be immediately deployed with the creative of Mollie smiling with an avocado beneath the headline “smashed it”.
Additionally, Woolworths launched a campaign titled "Fresh Fuels the Best in All of Us," featuring Australian Paralympian Col Pearse. This campaign, which was prominently featured in stores, on TV, and across various digital and social media platforms, highlighted Woolworths' commitment as the official fresh food partner of the Australian Olympic and Paralympic teams. The campaign aimed to inspire and connect with customers by sharing the stories of athletes supported by their local communities (AMI).
A great example of using the near real-time capabilities of digital media to maximise the cut-through & PR-ability of the campaign.
More information: https://www.qmsmedia.com/woolworths-joins-qms-as-paris-2024-olympic-and-paralympic-partner/
3. Morrisons launching loyalty pricing to increase loyalty penetration
One of the key loyalty trends in recent years has been the move to member-based, loyalty pricing.
Grocery retailers have been looking to reduce the cost of their points/rewards programmes whilst encouraging more customers to use their loyalty cards in order to acquire (and monetise) more customer-level basket data.
Even though Morrison’s relaunched it’s “More” loyalty program only last year, it now intends to re-shape “More” to include an expansion of loyalty pricing as well as an increased focus on “hyper-personalised” offers.
Morrison’s CEO, Rami Baitiéh, has stated that his goal is to increase overall loyalty pricing from 50% to 80% of transactions – and we know, from our experience, that loyalty pricing has that dramatic effect on loyalty penetration rates.
More information: https://www.retailgazette.co.uk/blog/2024/08/morrisons-ramp-up-loyalty/
4. Loyalty pricing cleared by the Competition and Markets Authority
A report by the UK’s Competition & Markets Authority (CMA) this month said despite probing “tens of thousands” of supermarket prices it had unearthed little to suggest loyalty promotions were based on bogus savings for customers.
The UK’s watchdog has been exploring whether loyalty pricing, such as Tesco’s Clubcard Prices and Sainsbury’s Nectar Prices, have been “misleading” shoppers and whether loyalty prices offered by supermarkets are “genuine promotions” and “as good a deal as presented”.
The CMA said its investigation results so far suggested it was unlikely to identify widespread evidence of loyalty promotions that mislead shoppers.
But the CMA is continuing to look into certain issues, such as the accuracy of "was/now" pricing promotions and how these compare across different supermarkets. They are also investigating how loyalty pricing impacts consumer behaviour and trust, particularly concerning the use of personal data.
The final CMA report is expected in November this year, which will provide a more comprehensive view of the findings. We’ll be closely monitoring any further developments from the CMA and will continue to provide updates on how this might affect the retail industry and consumer behaviour.
More information: hhttps://www.retailgazette.co.uk/blog/2024/07/supermarket-loyalty-cma/
5. Walmart demonstrates importance of Marketplaces for Retail Media Growth
Walmart is one of the global retailers setting the standard in terms of Retail Media monetization – and Walmart Connect, its retail media and advertising division, saw a 30% year-on-year increase.
One of the key areas driving this growth has been its expansion of Retail Media for Marketplace sellers, where smaller and emerging brands that sell their products through Walmart.
According to Walmart CEO Doug McMillon, advertising sales from Marketplace sellers surged by nearly 50%.
Additionally, this year, Connect has focused on expanding the number of channels where advertisers can purchase media. We have long said that retailers need to take an integrated approach to Retail Media and Walmart is a great example.
In-store and offsite channels have been major priorities for its Retail Media Network. More ads have started appearing on self-checkout lane screens, in TV aisles, at sampling stations, and over Walmart's store radios, as the retailer aims to better monetize its extensive brick-and-mortar presence.
In its offsite media channels, Connect has partnered with publishers like Disney to utilize its first-party shopper data for improved targeting and measurement of ads on connected TV platforms.
More information: https://www.marketingdive.com/news/walmart-q2-2024-earnings-retail-media-networks/724470/
6. Tesco expands its Marketplace offering
Large retailers have been introducing Marketplaces in an attempt to meet more of their customer’s need. As customers search their e-commerce sites for products – they can more easily fulfil these needs through a network of third-party sellers.
This month, Tesco announced that it was doubling the number of products available from third-party sellers to over 20,000 across a wide range of categories including garden, DIY, homeware, toys, sports, baby, beauty and pet care.
As the Walmart Connect example shows, Marketplaces are becoming an important and rapidly growing Retail Media revenue stream for retailers.
Additionally, Marketplaces significantly impact category management practices increasing the complexity of assortment & variety and the data analytics needed to ensure that the influx of data from marketplace sales can be used to drive decision making and provide valuable insights into consumer preferences and trends.
More information: https://www.retailgazette.co.uk/blog/2024/08/tesco-doubles-marketplace/
7. Uber Says It Will Make More Than $1B in Ad Revenue This Year
The Retail Media business model has also encouraged a range of data-driven organisations to establish media monetization strategies: whether you call it Retail Media or Commerce Media.
Uber is a great example of leveraging its digital real estate, user experience & customer data to create an incremental, diversified revenue stream from digital media.
It’s on track to surpass its ambitious goal of making advertising a $1bn business this year – significance year-on-year growth from last year’s $650 million.
Uber’s advertising growth is being fuelled by a mix of innovative ad formats across both its ride-hailing and Uber Eats platforms. Notably, the introduction of Journey Ads—programmatic in-app advertisements displayed during rides—has been a game changer. By partnering with major players like Google, The Trade Desk, and Yahoo, Uber has effectively expanded its ad reach. Additionally, the collaboration with T-Mobile to feature ads on digital screens inside rideshare vehicles via JourneyTV is another example of Uber’s creative approach to ad placement.
Uber Eats, in particular, has emerged as a strong contender in the ad space, attracting not just restaurants but also major consumer packaged goods brands. These brands are leveraging Uber Eats’ extensive reach to execute large-scale, multi-market campaigns. Beyond the typical food and beverage sector, Uber is also drawing interest from non-endemic advertisers in industries such as financial services, technology, entertainment, and luxury goods.
A standout example of Uber’s advertising potential is the recent campaign by L’Oréal, which targeted riders heading to Heathrow and Gatwick airports. By offering a free perfume sample through a clickable ad, L’Oréal achieved impressive engagement metrics, including a 342-second average view time and a 4.76% click-through rate—both significantly above industry benchmarks.
Our takeaway from Uber’s advertising success is clear: the company is not just a transportation and delivery service anymore—it’s becoming a major player in the digital advertising space. This expansion into advertising not only diversifies Uber’s revenue streams but also highlights the untapped potential of integrating ads into everyday consumer experiences. As Uber continues to innovate and grow its ad offerings, it’s likely we’ll see even more brands leveraging its platforms to reach targeted audiences in new and engaging ways.
We’ll be keeping a close eye on how Uber’s advertising business evolves and what this means for the broader retail media landscape.
